2024 (5) TMI 972 - HC - GST

Tax Penalty Order Overturned: Petitioner Granted 30-Day Window to File Statutory Appeal Under Section 107 of TNGST Act

Arockiasamy Kennedy Versus The Deputy State Tax Officer-2, Madurai

HC allowed petitioner's writ petition challenging tax penalty order, providing opportunity to file statutory appeal within 30 days under Section 107 of ... Levy of interest and penalty under Section 74 (9) of the TNGST Act, 2017 - petitioner has not participated in the proceedings before the respondent - one more opportunity of hearing sought by petitioner - HELD THAT:- Considering the fact that there is no due of tax as on date, the issue relates only to imposition of penalty and interest on the petitioner during the period 2020-21, a liberty is given to the petitioner to file Statutory Appeal before the Deputy Commissioner of State Taxes (GST Appeals), Madurai, within a period of 30 days from the date of receipt of a copy of this order, subject to the petitioner has complied with required deposit under Section 107 of the TNGST Act, 2017. As and when if such appeal is filed within a period stipulated above, the Deputy Commissioner of State Taxes (GST Appeals), Madurai, shall consider and pass appropriate orders on merits and in accordance with law. It is needless to state that the petitioner shall also be heard. The writ petition is disposed off. Issues involved: Impugned order levying interest and penalty under Section 74(9) of the TNGST Act, 2017 without petitioner's participation in proceedings.Summary:The petitioner filed a Writ Petition against the impugned order dated 10.07.2023 passed by the respondent, levying interest and penalty under Section 74(9) of the TNGST Act, 2017. The respondent issued multiple personal hearing notices to the taxpayer, who did not respond, leading to the determination of interest and penalty payable for 2020-21. The petitioner requested for another opportunity to participate in the proceedings. The respondent opposed the Writ Petition citing delay in approaching the Court. After considering arguments, the Court noted no due tax as of the date and allowed the petitioner to file a Statutory Appeal within 30 days subject to compliance with required deposit under Section 107 of the TNGST Act, 2017. If an appeal is filed, the Deputy Commissioner of State Taxes (GST Appeals), Madurai, will review and decide accordingly, ensuring the petitioner's right to be heard. The Writ Petition was disposed of with no costs.This judgment highlights the importance of participation in proceedings and the opportunity for appeal under statutory provisions, ensuring fair treatment and due process in matters of interest and penalty under the TNGST Act, 2017.